It's turned out to be quite a good deal for us both, as they are paying all utilities, some maintenance, and have even contributed to some cap ex in exchange for a multi-year lease. 

I agree I need to re-run the numbers with homes that have higher CAP rates and see if the numbers start to look more attractive.

With a new value of 186K, you new loan will be capped at 139500K, so you can do a cash out refinance and walk away with some cash.

As the foundation of real estate investment analysis, underwriting allows us to evaluate potential returns and associated risks accurately, ensuring informed and confident investment decisions.Understanding critical metrics like Net Operating Income (NOI), Capitalization Rate (Cap Rate), Debt Service Coverage Ratio (DSCR), Gross Rent Multiplier (GRM), and Cash-on-Cash Return is essential.

Coaching is great when you want to an existing business and start to scale, not from ground to one.A decent rule of thumb for a first investment in-state is to cap it at 30-60 minutes of driving or else you will be too detached from it to learn and properly landlord.

There are caps on income, assistance amount, and restrictions on being a first time home buyer.

Second tier entitlement will almost always be the cheaper route from a rate perspective.Depending on the price of the new home, you may cap out on entitlement.

And the reserve amount seems to cap off at 6 months, whereas CapEx funds could easily keep growing to accommodate for the upcoming large expenses.Where do you keep your 'maintenance' funds?

Quote from @Sushma Annaiah: As of now started looking at sfh and looking for cash flow .i will be taking mortgage and also planning to go with property management SFH + cash flow + property management will not compute in many areas right now, especially if you want something that is in great shape with no cap ex.

They have a cap of 3900 STR permits with about 500 still available.